The Abbeville press and banner. [volume] (Abbeville, S.C.) 1869-1924, 1887-12-21
THE PRESIDENTS MESSAGE

10 N1e congress " LSo Cbtteu oSuSoo'
You are confronted at the threshold Of your
legislative duties with condition Of the nar
tional finances which imperatively demands
immediate and careful consideration.
The amount Of money annually enacted,
through the operation of present laws, from
the industries and necessities Of the people,
largely exceeds the sum necessary to meet the.
expenses Of the Government.
When we consider that the theory Of our fn-
stitutions guarantees to every citizen the fnll
enjoyment Of all the fruits Of his industry and
enterprise, with only such deduction as may
be his share toward the careful and econom-
ical maintenance Of the Government which
protects him, it is plain that the exaction Of
more than this Is indefensible extortion, and .
culpable betrayal Of American fairness and
justice. This wrong inflicted upon those who
bear the burden Of national taxation, ike
sequences. The public treasury, which should
only exist as conduit conveying the peo-
ple's tribute to its legitimate objects Of e1-,
penditure, becomes a boarding place for
money needlessly withdrawn from trade and
the peoples use, thus crippling our national
energies, suspending our country's develop
ment, preventing investment in productive
enterprise, threatening financial disturbance,
and inviting schemes Of the public piunder. Z
This condition Of our Treasury is not alto
gether new, and it has more than once Of lata
been submitted to the peoples representatives
in the Congress, who alone can apply q
remedy. And yet the situation still continues,
with aggravated incidents, moro than ever
presaging financial convulsion and wide
spread disaster. p
1t will not do to neglect this situation be-.
cause its dangers are not now palpably
imminent and apparent They exist none the
less certainly, and await the unforeseen and.
unexpected occasion when suddenly they win
be precipated on us. @
On the 30th day of June, 1885, the excess
Of revenues over public expenditures after
the sinking fund act, was SIT ,859, ,735. "a; DUR
ing the year ended June 80, 1885, such excess
amounted to $49, ,405 $500 and during the:
year ended June 80, 1887, it reached the sum
Of SIS, ,567, ,S40.54
The annual contributions to the sinking
fund during the three years above specified,
amounting in the aggregate to $13S, ,05S,-
5000, and deducted from the surplus as
stated, were made by calling In for that pur.
pose outstanding 3 per cent. bonds of the Gov.
ernmeEt During the six months prior TO-
Juno ~, 1887, the surplus revenue had grown
30 large by repeated accumulations, and Il
was feared the withdrawal Of this great sum
Of money needed by the people would 80 AFFECT
the business Of the country, that the sum OF
$79, ,S84, 100 OF such surplus was applied to ths
payment Of tho principal and interest Of tie
3per cent bonds still outstanding, and which.
were then payable at the option Of the Gov
ernment The precarious condition OF fnan-
cial affairs among the people still needing
relief, Immediately after the 30th day Of
June, 1887, the remainder Of the s par !.
cent bonds then outstanding, amount
ing with principal and interest to-.
the sum OF $is,SH,5O were called IN and
the current fiscal year. Notwithstanding
these operations Of the Treasury. Department
representations Of distress in business circles
not only continued but increased, and abso-
lutte peril seemed at hand. In these circum.
stances the contributions to the sinking fund
for the current fiscal year was at once com
pleted by the expenditure of $27, ,6S4, ,2S5. 55in 5
the purchase Of Government bonds not yet
due bearing and ~ per cent interest, the
premium paid thereon averaging about "a per-
cent for the former and per cent for the
latter. In addition to this the interest accru
ing during the current year upon the out
standing bonded indebtedness Of the Govern
ment was to some extent anticipated, and
banks selected as repositories Of public money
were permitted to somewhat increase their
deposits
lease to the people the money lying idle in the
Treasury, served to avert immediate danger,
our surplus revenues have continued to accu-
mulate, the excess for the present year
amounting on the 1st day Of December to-
SIS. .25S, ,7Ol.19, and estimated to reach the.
sum of BIB OOU, 200 on the S0th of June next,
at which date it is expected that this sum,
added to prior accumuations, will swell the
surplus III the Treasury to $l4U, ,O0O,0 ,0O0.
There seems to be no assurance that, with
such a withdrawal from use Of the peoples
circulating medium, our business community
may not in the near future be subjected to
the same distress which was quite lately pro.
duced from the same cuuse. And while the
functions Of our National Treasury should be
few and simple, and while its best condition
would be reached, believe, by its entire dis
connection with private business interests,
yet when, by a perversion OF its purposes, 1t :,
idly holds money uselessly subtracted from
the channels of trade, there seems to be
reason for the claim that some legitimate
means should be devised by the Government
to restore in an emergency, without waste or
extravaganza, such money to its place among
the people ~ =
II such an emergency arises there now
exists no clear and undoubted executive
power Of relief. Heretofore the redemption
Of three per cent. bonds, which were payable
at the option Of the Government, has afforded :
q means for the disbursement Of the excess OF
our revenues; but these bonds have all been
retired, and there are no bonds outstanding
the payment of which we have the right to
insist upon. The contribution to the sinking
fund which furnishes the occasion for expen-
5;tnro in, tho y,nrchesa Of bonds has been AL
ready made for the current year, so that
there is no outlet in that direction.
In the present state Of legislation the only
pretense of any existing executive power TO
restore, at this time, any part OF our surplus
revenues to the people by its expenditures
consists in the supposition that the Secretary
of the Treasury may enter the market ana
purchase the bonds of the Government not yet
due, at rate of premium to be agreed upon.
The only provision of law from which such
power could be derived is found in an appro-
priation bill passed number Of years ago;
and it IS subject to the suspicion that it was
intended as temporary and limited In its ap-
plicat'on, instead Of conferring continuing
discrecon and authority. No condition ought
10 exist which would justify the grant OF
power to a single official, upon his Judgment
Of its necessity, to withhold from or release
to the business of the people, in an unusual
manner, money held in the Treasury, and
thus affect, at his will, the financial situation
of the country; and if it is deemed wise to
lodge in the Secretary of the Treasury the
authority in the present juncture to purchase
bonds, it should be plainly vested, and pro.
vided as far as possible, with such checks and
limitations as will define this officials right
and discretion, and at the same time relieve
him from undue responsibility.
In considering the question OF purchasing
bonds as means Of restoring to circulation
the surplus money accumulating in the
Treasury, it should be borne in mind that
premiums must of course be paid upon such
purchase, that there may be large part OF